EOFY action plan

EOFY action plan

Have you had an end-of-financial-year (EOFY) conversation with your clients yet? Here are some tried and tested options you may like to discuss.
 
  • Pre-pay income protection premiums: A tax deduction for income protection premiums may be claimed for this financial year if policy premiums are paid by 30 June 2019.
  • Charitable donations: Charitable giving tends to be more popular in June for tax deduction purposes but it can also be a good time to set up regular donations which are deducted throughout the year. There are also opportunities for clients who wish to make larger donations in support of sustainable giving i.e., where you put in a lump sum that is invested in a tax-free environment and each year the earnings on that investment are distributed to nominated charities.
  • Maximise concessional contributions: Identify options to make the most of tax deductions in relation to super up to $25,000.
  • Spouse contributions: To obtain a tax offset for an eligible spouse contribution up to $3,000, the receiving spouse’s income must be below $40,000p.a. The maximum $540 tax offset is available where the spouse’s income is less than $37,000.
  • Transition to Retirement (TTR) pension – condition of release: Earnings within a TTR pension are taxed at 15%. However earnings become tax-free when a person reaches 65 years or fulfils a condition of release (like retirement, terminal illness). Those who have met a condition of release need to notify their pension provider immediately.
  • Co-contribution scheme boost: The Government will contribute up to $500 to a person’s super account if a $1,000 contribution or more is made and their income is less than $37,696 for the year.
  • Trust distributions: Where relevant, resolutions must be made before 30 June. This makes it a good time to review any beneficiary’s taxable income for the 2018/19 financial year.
  • Bring forward benefit: Clients who have turned 65 during this financial year have a small window of opportunity to make the most of the $300,000 limit that applies to after tax super contributions (equivalent to three years’ annual cap). This may be relevant for those who have sold a property or received an inheritance.

Remember 30 June is a Sunday this year so make sure to allow enough time for your strategies to be implemented. ClearView’s EOFY reporting and processing cut-off times for WealthFoundations, WealthSolutions and Traditional Products can be viewed here.